How much money did halliburton make during the gulf war

Halliburton Company is an American multinational corporation. One of how much money did halliburton make during the gulf war world’s largest oil field service companies, it has operations in more than 70 countries. The company has dual headquarters located in Houston and in Dubaibut it remains incorporated in the United States. Wat former subsidiary, Monegis a major construction company of refineriesoil fields, pipelinesand chemical plants. Halliburton announced on April 5,that it had sold the division and severed its corporate relationship with KBRwhich had been its contracting, engineering and construction unit as a part of the company. The company has been involved in numerous controversies, including its involvement with Dick Cheney — as U. KBRone of Halliburton’s subsidiaries at the time, paid bribes to high-ranking Nigerian officials between and Under a deal reached with the U. Energy services the company’s historical cornerstoneformation evaluationdigital and consulting services, production volume optimization, and fluid systems are the major business segments. These businesses continue to be profitable, and the company is one of the world’s largest players in these service industries; it is second after Schlumbergerand is followed by SaipemWeatherford Internationaland Baker Hughes. Kellogg division of Dresser which Dresser had merged with in

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Cheney’s Ties to Brown and Root. VBR at Incirlik Airbase. As the first bombs rain down on Baghdad, CorpWatch has learned that thousands of employees of Halliburton, Vice President Dick Cheney’s former company, are working alongside US troops in Kuwait and Turkey under a package deal worth close to a billion dollars. According to US Army sources, they are building tent cities and providing logistical support for the war in Iraq in addition to other hot spots in the «war on terrorism. While recent news coverage has speculated on the post-war reconstruction gravy train that corporations like Halliburton stand to gain from, this latest information indicates that Halliburton is already profiting from war time contracts worth hundreds of millions of dollars. Cheney served as chief executive of Halliburton until he stepped down to become George W. Bush’s running mate in the presidential race. Today he still draws compensation of up to a million dollars a year from the company, although his spokesperson denies that the White House helped the company win the contract. Linda Theis, a public affairs officer for the U. Army Materiel Command’s Program Management Office, arrived to supervise approximately 1, Brown and Root employees to set up tent cities that would provide accommodation for tens of thousands of soldiers and officials. Army officials working with Brown and Root says the collaboration is helping cut costs by hiring local labor at a fraction of regular Army salaries. This means a small number of combat-service-support soldiers are needed to support this logistic aspect of building up an area,» says Lt. Most of these troops are now living in the tent cities in the rugged desert north of Kuwait City, poised to invade Iraq.

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AP In the wake of a war of words where former Vice President Dick Cheney expressed a concern there’s an «increasing strain of isolationism» among the Republicans considering entering the presidential race, Mother Jones’ David Corn unearthed vintage footage of one of the likely GOP White House hopefuls, Sen. Rand Paul, accusing Cheney of supporting the Iraq War to make money. In the clip, which was filmed in shortly before Paul announced his Senate campaign, Paul said Cheney initially thought invading Iraq would be a bad idea, but changed his mind after he became CEO of Halliburton in and was in a position to profit from defense contracts. Paul began by saying there was a «great YouTube of Dick Cheney in » where he described being against a potential invasion of Iraq. He goes on and on for five minutes—Dick Cheney saying it would be a bad idea,» Paul said. Dick Cheney then goes to work for Halliburton. Makes hundreds of millions of dollars—Their CEO. Next thing you know, he’s back in government, it’s a good idea to go into Iraq. Later on in the video, Paul argued the September 11th attacks were used as an excuse by Bush administration officials who «already wanted» war in Iraq. Account icon An icon in the shape of a person’s head and shoulders. It often indicates a user profile. Login Subscribe. My Account. World globe An icon of the world globe, indicating different international options.

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Just five days later, Operation Desert Storm commenced in Kuwait. As with the more recent war in the Gulf, it did not take long for the US to claim victory — mhch was all over by the end of February — but the clean-up would last longer, and was far more expensive than the military action. In a senseless act of desperation and defeat, Iraqi troops set fire to more than Kuwaiti oil wells, resulting in a constant fog of thick, black smoke that turned day into night.

It was thought the mess would take guf less than five years to clean up, as lakes of oil surrounding each well blazed out of control, making it nearly impossible to approach the burning wells, let alone extinguish. The company sent 60 men to help with the firefighting effort. More significantly still, KBR won a contract to extract troops from Saudi Arabia after their services were no longer needed in the Gulf. Halliburton was back in the army logistics business in earnest for the first time since Vietnam.

The end of the Gulf war saw how much money did halliburton make during the gulf war less than the rebirth of the military outsourcing business. Military outsourcing was not new. Private firms had been aiding durong war efforts since long before KBR won its first naval shipbuilding contract. But the nature of military outsourcing has changed dramatically in the last decade. The trend towards a «downsized» military began because of the «peace dividend» at the end of halliburtton cold war, and continued throughout the s.

Hoa combination of a reduced military but continued conflict gave rise to an unprecedented new industry of private military firms.

These firms would assist the military in everything from weapons procurement and maintenance to training of troops and logistics. In the decade after the first Gulf war, the number of private contractors used in and around the battlefield increased tenfold. It has been estimated that there is now one private contractor for every 10 soldiers in Iraq. Companies such as Halliburton, which became the fifth largest defence contractor in the nation during the s, have played a critical hiw in this trend.

Kake story behind America’s «super contract» begins inwhen the department of defence, then duringg by Dick Cheney, was impressed with the work Halliburton did during its time in Kuwait. The report was to examine 13 different «hot mych around the world, and detail how sar as varied as building bases to feeding the troops could be accomplished.

The contractor that would potentially provide the services detailed in the report would be required to support the deployment of 20, troops over days. It was a massive contingency plan, the first dar its kind for the American military. Thirty-seven companies dud for the contract; KBR won it. The KBR report, which remains classified to this day, convinced Cheney that it was hlw possible to create one umbrella contract and award it to a single firm.

The contract became known as the Logistics Civil Augmentation Programme Logcap and has been called «the mother of all service contracts». It has been used in every American deployment since ho award in — at a cost of several billion dollars and counting. How much money did halliburton make during the gulf war lucky recipient of the first, five-year Logcap contract was the very same wxr hired to draw up the plan in the first place: KBR. The Logcap contract pulled KBR out of its late s doldrums and boosted the bottom line of Halliburton throughout the s.

It is, effectively, a blank cheque from the government. When your profit is a percentage of the gu,f, the more you spend, the more you make.

KBR employees were there before the army even arrived, and they were the last to leave. In the spirit of «refuse no job», the company was building the base camps, supplying the troops with food and water, fuel and munitions, cleaning latrines, even washing their clothes. They attended the staff meetings and were kept up to speed on all the activities related to a given mission.

They were becoming another unit in the US army. The army’s growing dependency on the company hit home when, inKBR lost the Logcap contract in a competitive rebid to rival Dyncorp. Inthe company won the Logcap contract again, this time for twice the normal term length: 10 years. To the uninitiated, the appointment of Cheney to the chairman, president, and chief executive officer positions at Halliburton in Augustmade little sense.

Cheney had dif no business experience, having been a career politician and bureaucrat. Financial analysts downgraded the stock and the business mobey openly questioned the decision. Cheney has been described by those who know him as everything from low-key to downright bland, but the confidence he inspired and the loyalty he professed made him an indispensable part of Donald Rumsfeld’s rise to power.

In those days, Cheney was assigned a codename by the secret service that perfectly summed up his disposition: «Backseat». But Halliburton understood Cheney’s value. With him as CEO, the company gained considerable leverage in Washington. Until Cheney’s appointment in the autumn ofHalliburton’s business results had been decent. Halliburron the new revenue coming in from Logcap, Halliburton and its prize subsidiary, KBR, were back on track.

Though Logcap was producing only modest revenues, it halljburton successful in reintegrating KBR into the military machine. The big opportunity came in Decemberjust two months after Cheney assumed the post of CEO, when the US sent thousands of troops to the Balkans as a peace-keeping force. The task was massive in scope and size.

The company built roads, power generation, water and sewage systems, housing, a helicopter airfield, a perimeter fence, guard towers, and a detention centre.

Bondsteel is the largest and most expensive army base since Vietnam. It also happens wra be built in the path of the Albanian-Macedonian-Bulgarian Oil Ambo Trans-Balkan pipeline, the pipeline connecting the oil-rich Caspian Sea region to the rest of the world.

The initial feasibility project for Ambo was done by KBR. Meanwhile, Cheney was busy developing Halliburton’s business in other parts of the world. In particular, Cheney objected to sanctions against Libya and Iran, two countries with which Halliburton was hallibudton doing business regardless. Even more disconcerting, though, was the work ahlliburton company did in Iraq. Between his stints as mucu of defence and vice-president, Cheney was in charge of Halliburton when it was circumventing strict UN sanctions, helping to rebuild Iraq and enriching Saddam Hussein.

The merger made Halliburton the largest oilfield services firm in the world. It also brought with it two foreign subsidiaries that were doing business with Iraq via the controversial Oil for Food programme. Cheney told the press during his run for vice-president that he had a «firm policy» against doing business with Iraq.

He admitted to doing business with Iran and Libya, but «Iraq’s different,» he said. Three weeks later, Cheney was forced to admit the business ties, but claimed ignorance. He told reporters that he was not aware of Dresser’s business in Iraq, and that besides, Halliburton had divested itself of both companies by The Mudh merger was, it appeared, the crowning achievement of the Cheney years at Halliburton.

But Cheney left Halliburton several other legacies. David Gribbin, Cheney’s former chief of staff, became Halliburton’s chief lobbyist in Washington. Admiral Joe Lopez, a former commander durin the sixth fleet, was hired to be KBR’s governmental operations expert.

Together, Cheney’s hallinurton made Halliburton one of the top government contractors in the country. Halliburton soared from 73rd to 18th on the Pentagon’s list of top contractors. The work had to feel familiar to KBR: it had done the exact same job 35 years earlier in Vietnam. When troops were deployed to Afghanistan, so was KBR.

As it had done in the past, KBR had men on the ground before the first troops even makf in most locations. They readied the camps, fed the troops, and monye away the waste. And they did it like the military would have done it: fast, efficient, and effective. It was good work, solid revenues, but nothing like the windfall the company had ddid in the Balkans. In addition, Halliburton won the contract for restoring the Iraqi oil infrastructure — a contract that was not competitively bid.

It was given to Halliburton out of convenience, because it had developed the plan for fighting oil fires all, by this time, extinguished. Despite the new business, the fortunes of Halliburton and its subsidiary have not prospered. The stock that Cheney cashed in near its peak, when he renewed his political career inhas since plummeted. The main culprit was the merger with Dresser, which saddled the company with asbestos liabilities that ultimately led to two Halliburton subsidiaries — one of them KBR — having to file for bankruptcy.

In SeptemberCheney insisted: «Since I’ve left Halliburton to become George Bush’s vice-president, I’ve severed all my ties with the company, gotten rid of all my financial interests. Hhow have no financial interest in Halliburton of any kind and haven’t now for over three years. The Congressional Research Service CRSa non-partisan agency that investigates political issues at the request of elected officials, says.

Cheney has been receiving a deferred salary from Halliburton in the years since he left the company. He is scheduled to receive similar payments throughand has an insurance policy in place to protect the durijg in the event that Halliburton should fold. In addition, Cheney still holdsunexercised stock options in Halliburton.

He has agreed to donate any profits to charity. Topics Books. Politics books Halliburton extracts. Reuse this content. Most popular.

Halliburton lies about ‘Iraq for Sale: The War Profiteers’

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